The North American digital asset market suffered a major setback this week with a net withdrawal of 952 million dollars. According to CoinShares data, this is the first time in a month that investment products have recorded negative flows.
Uncertainty over crypto regulation in the United States has sparked panic among large local institutional investors today. The delayed Senate vote regarding the CLARITY Act was the main trigger for this significant market movement. The news was confirmed by journalist Hassan Shittu after analyzing the most recent financial reports.
Ethereum was the most affected asset by this trend, recording outflows exceeding 555 million dollars. For their part, Bitcoin-based products suffered withdrawals totaling 460 million dollars. The market’s sensitivity to legal developments is now more evident than ever in the digital ecosystem.
Financial analysts are watching with concern the lack of clear direction from legislative bodies in Washington. Furthermore, total assets under management have dropped to 46.7 billion dollars across all exchange-traded products worldwide.
However, while the giants suffer, other assets such as Solana and XRP have managed to survive the red tide. Solana attracted 48.5 million dollars in new investments, while XRP added 62.9 million to its funds. The steady accumulation in these alternative assets suggests a strategic diversification by current market operators in the sector.
Confidence in scalable blockchain technology networks seems to remain firm despite the prevailing political noise in Congress. Therefore, institutional interest is shifting toward projects with apparently less conflicting operational frameworks for their future development.
Legislative paralysis in the Senate and its impact on global investor confidence
The relevance of this fact lies in the CLARITY Act’s goal to define whether an asset is a security or a commodity. White House crypto czar David Sacks announced that the debate is postponed until January 2026. The delay in passing federal laws has cooled the enthusiasm surrounding the 2025 year-end close.
In this way, the regulatory framework needed for the massive expansion of on-chain finance remains on indefinite hold. Crypto regulation in the United States faces political obstacles that hinder the arrival of fresh capital to the market.
On the other hand, Senators Tim Scott and John Boozman will lead the bill’s markup in early 2026. Although the House of Representatives passed the legislation in July, the Senate has slowed the process considerably. The lack of bipartisan consensus in Congress is directly punishing the valuation of exchange-traded funds (ETFs).
Since election-year pressures are beginning to weigh, legal certainty for crypto companies seems to be moving further away from Trump’s presidential desk. The regulated environment demanded by traditional investors remains a promise yet to be fulfilled by lawmakers.
Will Bitcoin and Ethereum regain positive flow before the January vote?
Likewise, Senator Cynthia Lummis had previously suggested that the bill would be ready before the end of this fiscal year. However, the recent 43-day government shutdown abruptly and severely interrupted the legislative calendar for everyone.
Panic in the capital markets is a reflection of investor fatigue regarding the current unfulfilled promises. Therefore, crypto regulation in the United States is now viewed with growing skepticism by Wall Street professionals. Price volatility will remain closely linked to the headlines emerging from the offices of the Capitol.
Finally, the outlook for the start of 2026 will depend exclusively on the speed with which the Senate tackles the bill’s markup. Structural clarity is expected to allow institutions to once again increase their exposure to leading digital assets.
The future of crypto investment funds is intrinsically connected to the resolution of this legal and political conflict. Thus, investors must prepare for a January filled with high-impact regulatory news. The consolidation of the United States as the world capital of the sector depends on the success of this framework.
